Fresh Technology Unveiled: Impact on Old Vehicles, Consumer Second-hand Market Trends
The Specialty Equipment Market Association (SEMA) has released its 2025 Market Report, predicting a transition from rapid, pandemic-era growth to a more balanced, stable expansion in the American automotive aftermarket sector.
According to the report, consumers spent over $52.65 billion on vehicle customisation and modification in 2024, marking a 1% year-over-year increase. This growth is expected to normalise to around 3-4% annually by 2026. The report forecasts a return to steady, long-term expansion of 4 to 5 percent annually in the automotive aftermarket sector.
One of the key factors driving this growth is the aging of the average vehicle on American roads, which now stands at 8 years, the oldest ever recorded. High new vehicle prices, averaging over $48,000 as of late 2024, push owners towards aftermarket upgrades, repairs, and customisation rather than purchasing new vehicles.
Suspension, exhaust, and engine control parts continue to show growth of more than 2%, reflecting ongoing consumer interest in performance and mechanical upgrades. In contrast, sales for mobile electronics (e.g., GPS and sound systems) declined as more new vehicles come equipped with integrated technology.
Pickup trucks account for approximately one-third of all aftermarket spending, while crossover utility vehicles (CUVs) are rapidly gaining ground in the aftermarket sector, driven by consumer demand for practical, family-oriented vehicles with modifiable features.
Younger drivers under 45 are leading the aftermarket market, making over 60% of aftermarket purchases as they increasingly buy used vehicles and seek customisation. Older drivers keep vehicles longer but spend less on modifications.
Advanced Driver Assistance Systems (ADAS) like backup cameras, emergency braking, and lane departure alerts are now commonplace, affecting how vehicles are customised and repaired. While fully autonomous vehicles remain distant, ADAS technology's widespread adoption influences aftermarket product development and service.
Enthusiasm for electric vehicles (EVs) is softening somewhat, with automakers slowing EV production and shifting focus towards hybrids. This dynamic influences aftermarket demand, as EVs currently require different aftermarket approaches compared to traditional internal combustion vehicles. However, EV owners, particularly those in the performance and motorsport segments, lead in racing gear and protective apparel purchases.
SEMA's 2025 outlook stresses a transition from rapid, pandemic-era growth to a more balanced, stable expansion, driven by an aging vehicle fleet, high new car costs, dominant pickups and CUVs, younger consumer engagement, and evolving technology integration in vehicles. This provides clear opportunities for manufacturers, distributors, and specialty enthusiasts focusing on performance, accessories, and customisation tailored to these shifting consumer and vehicle trends.
The SEMA Show in Las Vegas, the association's flagship event, showcases the thriving ecosystem of over 7,000 companies engaged in the design, manufacture, distribution, and retail of automotive specialty parts. SEMA supports the enthusiasts and entrepreneurs who define American car culture.
- In the realms of finance and industry, the automotive aftermarket sector is projected to experience a transition from rapid growth to a balanced expansion, as predicted by SEMA's 2025 Market Report.
- The home-and-garden industry could benefit from the growing interest in performance and mechanical upgrades, as sales of suspension, exhaust, and engine control parts continue to demonstrate growth.
- The technology sector may find opportunities in the development and service of Advanced Driver Assistance Systems (ADAS), as these systems are becoming commonplace and influencing aftermarket product development.
